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TRAINING PROJECT REPORT

On

“ANALYSIS OF VARIOUS BRANDS OF

SOYABEAN REFINED OIL IN THE MARKET”

Training at- BATHINDA CHEMICALS LIMITED,

BHATINDA.

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREE OF

MASTERS IN BUSINESS ADM INI STRATION

IN MARKETING (2009-2014)

Submitted to: Submitted by:

Mr. Ravi Kumar Gurpreet Singh

MBA (IC) 4th

yearRoll No. 413

UNIVERSITY SCHOOL OF BUSINESS STUDIES,

GURU KASHI CAMPUS

TALWANDI SABO.



CONTENTS

ACKNOWLEDGEMENT I

EXECUTIVE SUMMARY I I

1. THE MITTAL GROUP 1

2. VISION & MISSION 2

3. COMPANY HISTORY 2

4. MITTAL GROUP OF COMPANIES 4

5. BOARD OF DIRECTORS 11

6. SOCIAL ACTIVITIES 12

7. THEIR PARTNERS 13

8. ACHIEVEMENTS 14

9. BHATINDA CHEMICALS LIMITED 15

10. MAJOR OTHERS PLAYERS 16

11. ABOUT THE PROJECT 19

12. RETAILERS AND CUSTOMERS 26

13. RECOMMENDED MARKETING STRATEGY 27

14. RESEARCH METHODOLOGY 37

15. ANALYSIS OF RETAILER RESPONSES 40

16. ANALYSIS OF CUSTOMER RESPONSES 46

17. SUGGESTIONS OF THE RETAILERS & CUSTOMERS 53

18. CONCLUSIONS & RECOMMENDATIONS 5319. BIBLIOGRAPHY 55



ACKNOWLEDGEMENT

The research on ―Analysis of various brands of soyabean refined oil in the market ‖,was assigned to me as my Training project.

I have tried my best to present this information as clearly as possible using basic

terms that I hope will comprehended by the widest spectrum of researchers, analysts

and students for further studies.

I am thankful to Mr.S D Saini, Company guide for his guidance and support. Mere

acknowledgement may not redeem the debt I owe to my parents for their

direct/indirect support during the entire course of the project.

Gurpreet Singh

MBA (IC) 4th

year Roll No.- 413



EXECUTIVE SUMMARY

The objective of this research is to determine the customer as well as retailers preferences regarding di fferent so ya bean brands which resul t in their market share. It

involves the study the consumers’ buying behavior and attitudes towards a variety of

attributes and factors, which help them in decision-making.

First, part of the project consists of company background, History, Management of

Company, Social activities, Achievements etc. and also about other major player in the

market.

The second part consists of the introduction about the project and soyabean refined

Oil market in india and recommended marketing satrategy for the company. It also

includes the Research Methodology followed during the project.

Later I went through the process of filling the questionnaires from 50 retailers & 100

customers selling and consuming soya oil, both retailers and customers were taken into

account to make this research more effective. Secondary data from various sources like

magazines, a journal etc has also been taken.

The findings showed that the retailers who sell various brands want more margin and

various packages as well and customers want some discount schemes and soya bean oil

at reasonable price between 40 -50,moreover they want after sale services.

But, at the end the research was limited due to small sample size, small sample area

and time constraints.



Mittal Group started of its business activity about 30 years back in 1976 at Bathinda (Punjab)with the installation of small Solvent Extraction Unit by Sh.D.D.Mittal Under the name Bathinda

Chemicals and Banaspati Mills Pvt.Ltd. In early 80s the business was headed by his sons

Sh.Rajinder Mittal , Sh.Manoj Mittal, Sh.Vinod Mittal. With the continuous expansion-cum-

modernization plans the unit has been established as an integrated edible oil complex, one of the

biggest in north India. Another Proprietorship concern M/s R.K. Exports, Bathinda owned by

Mittal Group has been established in 1992 and doing business of Import & Export of edible oils &

various food stuff Items.

In 1990 the group entered into the business of Real Estate as developers and since than the group

has undertaken large residential and commercial Projects. On the horizon of the Real estate

development and construction, ―Mittal Group‖ has registered a remarkable presence in the North

India, especially in Delhi, Haryana, Punjab, Madhya Pradesh, Rajasthan & Himachal Pradesh.

Today, the Group is accredited with some magnificent Residential Township as well as

Commercial, Shopping malls & Hotels edifices which have become benchmark of architectural

brilliance.



1. VISION & MISSION

VISION

The Vision is to Grow…

The commitment is to Perform

The excellence is to deliver consistently..

MISSION

―The aim is to create a hallmark in the Edible oil, Real Estate & Distillery industry withImprovisation, Novelty and Uniformity as the trademark of our business which is gradually

changing the look of our country‖

Rajinder Mittal, chairman

Mittal Group



2. Company History

The Company was incorporated on 3rd February as a Pvt. Ltd. Company under the name of

Bhatinda Chemicals and Banaspati Mills Pvt. Ltd. with the Registrar of Companies Punjab

Himachal Pradesh and Chandigarh at Jalandhar which was later on changed to Bhatinda

Chemicals Pvt.Ltd on 6.5.1985.

- Bhatinda Chemicals Ltd was promoted by Mr. Dwarka Das Mittal and his associates.

- The company is engaged in manufacturing of Vanaspati Ghee Refined edible oils Solvent

extracted oils Rice Bran oils and Parboiled rice Rice Bran De-oiled cakes.

1979 - The capacity of the Sovent plant was doubled to 80 TPD and 12 TPD Hydrogenation plant

was financed by PSIDC.

1989 - The Company was converted into a deemed Public Ltd. Company on 2nd January and

further converted into Public Ltd. Company w.e.f. 4.4.1992 vide order of Registrar of Companies

Punjab Himachal Pradesh and Chandigarh dated 3.9.92.

- The Company initially started solvent extraction with the capacity of 40 TPD. The project was

financed by Punjab Financial Corporation.

1980 - The company further diversified its activities by installing refinery and oil mill from its

own sources and capacity of solvent extraction plant was raised upto 100 TPD.

1990 - The Company further enhanced the capacity of solvent extraction from 100 TPD to 150

TPD by raising loan of Rs 80 lacs from PSIDC

1991- In August the company was sanctioned Rs. 120 lacs from PSIDC for installation of fresh

solvent extraction plant of 200 TPD and the capacity of Hydrogenation plant was raised from 12

TPD to 25 TPD.

- With the delicensing of Vanaspati Ghee in New Industrial Policy announced on 25/07/1991 the

Company stopped manufacturing hard oil and the hydrogenation plant of the company was

modified so as to facilitate the manufacturing of Vanaspati.



2000 - The Board has decided to issue further equity shares to the extent of 44 00 000 No. of

equity shares of Rs 10 each at par on preferential basis to individuals promoters the relatives and

associates of promoters corporate bodies or various persons including existing shareholders and

other entities subject to necessary approvals.



3. Mittal Group of companies.

MAJOR DOMAINS

At the mittals they have strong focus on the corporate values and work culture. Their workforce is

committed to long term strategic partnerships that deliver value beyond the contract of their

customers.

They are setting up new standards in 3 specialist domains:

Edible oil

Distillery

Real estate

At the Mittals they Honour and Celebrate outstanding performance of their group companies.

1. M/s Bhatinda Chemicals limited – Bathinda

2. M/s Ganpati Townships limited — Bathinda

3. M/s Kissan Fats limited — Jalalabad

4.

M/s Pioneer Industries limited — Pathankot5. M/s Sheesh Mahal Developers limited – Bathinda

6. M/s Cosmos Infra Engineering ( India) limited — New Delhi

7. M/s Gee City Builders Pvt. Limited – Chandigarh

8. M/s Ansal Mittal Township Pvt. Limited – New Delhi

9. M/s Svarna Infrastructure & Builders Pvt. Limited – Kolkata

10. M/s Chavan Rishi Resorts Pvt. Limited – New Delhi

11. M/s Creative Buildwell Pvt. Limited – New Delhi

12. M/s Ganpati Estates – Bhatinda

13. M/s R.K. Resorts – Bhatinda



1. EDIBLE OIL



2. Distillery



3. Real estate



Residential

They have created high quality residential landmarks all over the country. From developing

economical, low budget housing to erecting stunning masterpieces, the one thing that has always

been Theirmotto is ―Quality‖. Buildings been erected by us stands the test of time even today.Since the very beginning They have always endeavored to be the best by using the best, never

compromising on quality and strength Theirforesight has continuously added new dimensions to

urban living in India.

Commercial

Being the builder of choice for India, They have always felt responsible to add to the community.

Theirobsession to redefine the way people live is extended even to the business community, byredefining the way people work. They are amongst the first to develop Mumbai’s famous business

district, Nariman Point, the Manhattan of Mumbai. Providing state of the art infrastructure

coupled with amazing quality, Theircommercial sky rises form a legacy for corporate and are a

matter of great pride for Theirclients and us.

http://www.mittalgroup.co.in/realestate_home.htm

http://www.mittalgroup.co.in/commercial.htm

http://www.mittalgroup.co.in/commercial.htm

http://www.mittalgroup.co.in/realestate_home.htm



4. . Hotels and resorts

The company is also a leader in hotel and resorts . It has its presence in Bhatinda , Gurgaon and

Chandigarh.

5. Board Of Directors

Board Of Directors

Director (Nominee of PSIDC) A K Sood

Chairman D D Mittal

Director Rajan Sekhariya

Managing Director Rajinder Mittal

Director Vinod Mittal



6. SOCIAL ACTIVITIES

A belief of spreading humanity with evolution is what They desire. Feeling the need to cultivate a

better India, They have built and even sponsored few non charitable organizations. These

organizations carry out a social responsibility of civilizing lives of people. These associations and

charitable trust are:

The Mittal Group has always felt the need to cultivate, grow and help Indian society. Theysponsor and run several non profit charitable organizations across the country.

Schools

Walsingham House School (ICSE), Mumbai Colleges

Kamaladevi Gauridutt Mittal Ayurvedic College, Mumbai

Gauridutt Mittal High School & Junior College, Mumbai

Kamaladevi Gauridutt Mittal College, Mumbai

Kamaladevi Gauridutt Mittal Girls College, Rajasthan

Hospitals & Charities

Kamaladevi Gauridutt Mittal Ayurvedic Hospital, Mumbai

Gauridutt Dhadharia (Mittal) Eye and Dental Hospital, Rajasthan

Mittal Charities

Bhagwati Charitable Trust

Every single project undertaken by us bears the Mittal Stamp of Quality. They not only make

Their buildings that have great aesthetic appeal, They also take great pains to ensure they are safe



and sturdy. For instance, buildings in Their township project of Mittal Enclave in Naigaon (E) on

the outskirts of Mumbai have foundations that go seven floors deep!

All Their projects are certified by leading structural engineers, and the quality certification is done

by certified institutes. They use the world-class building materials money and partner with the

best minds in the business. For example, They use the services of architects such as the reputed

Talati and Panthaky; the RCC consulting is done by Shailesh Mahimtura. Other Associates

include Painterior and Likproof, reputed for their high standards.

Many of Their projects have been designed by Hafeez Contractor, who has acquired a reputation

both in India and abroad for his superb and path-breaking quality of his work.

The interiors too bear the unmistakable stamp of Mittal Quality. Elegant marble and granite

flooring, ceramic tiles, powder-coated aluminium sliding windows are all standard in Their

constructions. Not to mention concealed wiring and plumbing and top-class fittings. Their

commercial constructions come with advanced fire-fighting and security systems, emergency

power supply, fibre optic connectivity, the works.

Anyone who buys into a Mittal Project is guaranteed of a quality product that will last

generations.

7. Their partners

Over the years Mittal Builders have worked with some of the leading names in the indian real

estate industry. To name a few

Contractors & Architects

Hafeez Contractor Talati & Panthaky Associated Pvt. Ltd.

B.N.Shah & Associates

Tecton Consultants

Ajay Wade and Associates

Laxman Thite & Associates, Pune

RCC Consultants & Waterproofing

Mahimtura Consultants Pvt. Ltd.



Likproof India Pvt. Ltd.

Painterior

Vora & Associates

Rajesh Shah. & Associates

Banks & Institutions

HDFC

HDFC Bank

CITI Bank

State Bank of India

National Co-op Bank

Dhanalaxmi Bank

Laxmi Vilas Bank

8. Achievements

‘Third highest prouducer of refined rice bran oil’ for the year 2009-2010.

Bhatinda Chemicals (Bhatinda) specializes in the development, manufacture and marketing of oil

related food products. The company produces vegetable, mustard, sunflower, cotton seed, rice

bran and soyabean oils. It also extracts acid oil and oxygen gas from mustard, sunflower, cotton

seed and rice bran. It primarily operates in India. The company is headquartered in Bathinda,

India. The company recorded revenues of INR2,136 million (approximately $49.2 million) during

the fiscal year ended March 2009, an increase of 3% over 2008. The net profit was INR21.7

million (approximately $0.5 million) in fiscal year 2009, as compared to the net profit of INR4.39

million (approximately….$0.1.million)in.2008.



9. Bhatinda Chemicals Limited

Bathinda Chemicals Limited is situated on Hazi Ratan LinkRoad in Bathinda. This Unit was setup

in 1978. Following items are manufactured in this unit :

Vanaspati

Refinery

Solvent Plant

Expellers

Rice Sheller



TheirProducts are made of following things: Cotton seeds, Kardi, Mahuwa, Maize (Corn), Niger

seed, Palm, Palmolein, Imported Pareseed, Rice Bran, Salseed, Sesame, Soyabean, Watermelon

seed, Sunflower, S.E. Mustard, S.E. Groundnut, S.E. Sesame.

10. MAJOR OTHERS PLAYERS

AMRIT BANASPATI CO. LTD

Amrit Banaspati Co. Ltd a company that is synonymous with purity and goodness, is poised on

the threshold of the new millennium today. In a country as diverse as India , nature has showered

her best, in full measure.

About the company :-

At Amrit Banaspati Company we have stayed close to our roots nature. Our special understanding

of nature and her ways have enabled us to grow form a Vanaspati company to a multi product

organization producing a whole range of edible oils and fats.

Today ABC has an installed capacity of 10,000 metric tonnes per month as compared to a mere3,000 metric tonnes per month in its first year of operations. This stupendous growth has been

possible because ABC has continuously endeavored to bring new products to the Indian consumer

and that end is R and D has played a key role.

Further ABC has over the years introduced a range of refined oils namely, soyabean, groundnut,

cottonseed, mustard and sunflower.

With the objective of meeting the varied need of Indian consumer.



Besides ABC also produces bakery shortening and confectionery fats and oils among other

products that meet your specific needs.

Most importantly, all our products meet the stringent international standards. So much so that

ABC brands are household names today and have been honored with the ―Monde Selection

Medal of Brussels‖ on several occasions.

Amrit Banaspati has adopted three tire Distribution :-

PLANT , DISTRIBUTERS , RETAILERS , CONSUMERS

All the products produced at ABC Rajpura are sold in the area of Punjab, Haryana, Rajasthan,

J&K, Himachal Pradesh, West Bengal and Chandigarh through 130 depots and 575 stations.

Number of dealers engaged in distribution of Amrit Banaspati’s products are around 670.

FORTUNE SOYABEAN OIL

Fortune Refined Soyabean Oil is light, odorless and healthy oil. Most importantly

it contains OMG3 (Omega – 3 fatty acids) – an essential PUFA which needs to be supplemented

from outside sources. Soyabean oil is the preferred oil of many a household across the world.

The Ruchi Soya Industries Limited

R uchi Soya Industries Limited is an agro industry of Rs 3081.60 crores turnover Ruchi Group. It

is the flagship company of one of the five companies of the group. The group has an impressive

net worth of Rs 401 crores (Rs 4010 million) and assets worth Rs 682.75 crores.

The company was founded by industrial visionary late Shri Mahadeo Shahra and at present is

http://soyumm.com/index.html

http://www.adaniwilmar.com/







headed by his eldest son Shri Kailash Shahra, who is the Chairman of the Group. Shri Kailash

Shahra has enhanced the vision by transforming countryside of Madhya Pradesh into Soya bowl

of the nation.

R uchi Soya Industries Limited (RSIL) is Flagship Company of Ruchi Group. It is most integrated

Soya processor and first company in the country to export Soya meals, manufacture edible grade

Soya flour and textured Soya proteins in India. Its brand `Nutrela' enjoys market leadership in the

Soya product segment. RSIL is leading player in vegetable oils, Soya flour and vanaspati

products. It commands large share of market. Three generation experience, integrated vision,

entrepreneurship and industrial competitive spirit has not only expanded the reputed business but

has led to diversification in closely associated ventures including foreign collaborations

11. ABOUT THE PROJECT

EDIBLE OIL MARKET IN INDIA

India accounts for 9.3 percent of world oilseed production. It has the world’s fourth largest edible

oil economy. Yet, about 43 percent of edible oil available in India is imported. In 1999 India

ranked as the world’s largest importer of edible oils, displacing China. The bulk of edible oil

India imports under the Open General License (OGL) are RBD Palmolein of Malaysian and

Indonesian origin

India has approximately 300 crude edible oil refining units. 60-70 percent of which are small.

Unlike the bigger refiners. The small ones are unable to import huge quantities of crude either due

to their low capacity or lack of financial resources, and may be forced to close down or sell out to

the bigger ones in the foreseeable future.



A major problem is the low capacity utilization. The installed capacity of oil mills is around 36

million tones annually, but capacity utilization is only 40 percent solvent extraction plants show

only 33 per cent capacity utilization and vegetable oil refineries show 40 per cent.

The total import of edible oils during the period form November 1998 to October 1999 totaled 4.4

million tones valued at more than Rs. 9.000 crores. That was against a demand – supply gap of 1.4

million tones in 1998-99. Imports have therefore deluged the market.

The import of relined palm oil was put under OGL (Open general License) in March 1994. Other

edible oils were put under OGL in April 1995 (when an item is brought under OGL, it means that

the item can be imported without seeking any approval).

Originally, there was no discrimination between refined and non refined edible oil as far as import

duty concerned. The duty on both was 65 percent. Duty was the slashed to 30 percent for both,

then to 20 percent in 1996 and 15 percent in then 1999-2000 budgets.

On December 30, 1999 a differential duty structure was introduced. Duty on refined oil was fixed

at 27.5 percent (25 percent plus 10 percent surcharge) while that on crude was retained at 16.5

percent (15 percent plus 10 percent surcharge) But only actual users (as opposed to traders) are

allowed to avail of this reduced duty on crude oil. Traders are nevertheless allowed to import

crude at the reduced duty but only to sell to actual users on a high seas basis. This requires that

the actual users fills in the import documents (and pays the reduced duty) but leaves the importing

process to the trader.

In most parts of the world, the import duty on oilseeds is lower than that on oils. But, in India it is

higher 40 percent. That is why no import of oilseeds of oil bearing material has taken place in

India. The industry wants the duty to be lowered from the present 40 percent to 5 percent.

Edible oils prices in the Indian market have crashed due to large imports by multinational trading

houses see table.



IMPORTANCE OF EDIBLE OILS IN THE COUNTRY’S ECONOMY

Oilseeds and edible oils are two of the most sensitive essential commodities. India is one of the

largest producers of oilseeds in the world and this sector occupies an important position in the

agricultural economy and accounting for the estimated production of 29.14 million tonnes of

nine cultivated oilseeds during the year 2009-2010. India contributes about 10-11% of the world

oilseeds production. Export of oil meals, oilseeds and minor oils has increased from 2.28, million

tones in the financial years 2009-2010. In terms of value, realization has gone up from Rs.5653/-

crores to Rs.8447/- crores. India accounted for about 7.4% of world oil meal export.

Types of Oils commonly used in India.

India is fortunate in having a wide range of oilseeds crops grown in its

Different agro climate zones. Groundnuts, mustard/rapeseed, sesame, safflower, linseed, Niger seed/ castor are the major traditionally oilseeds. Soya been and sunflower have also assumed

importance in recent years. Coconut is most important amongst the plantation crops. Efforts are

being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and

Andaman and Nicobar Islands. Among the non-conventional oils, rice bran oil and cottonseed oil

are the most important. In additional, oilseeds of tree and forest origin, which grow mostly in

tribal inhabited areas, are also a significant source of oils. Figures pertaining to production of

major cultivated oilseeds , availability of edible oils from all domestic sources and consumption

of edible oils (from Domestic and Import sources) during the last few years are as under :-

In Lakh Tonne

Oil year (Nov-

October)

Production of

oilseeds

Net availability of edible

oils from all domestic

sources

Consumption of

edible oils (from

domestic and import

sources)



2003-2004 247.48 69.60 95.82

2004-2005 207.15 60.15 102.11

2005-2006 184.40 54.99 96.76

2006-2007 206.63 61.46 104.682007-2008 150.58 47.28 90.93

2008-2009 251.42

(4th advance

Estimates)

71.09

(Est.)

124.04

(Est.)

2009-2010 248.42

(2nd advance

estimates)

73.10

(Est.)

117.10

(Est.)

Source (i) Production of oilseeds, Ministry of Agriculture as Declared on 19-01-2009.

(ii) Net availability of edible oils, Directorate of Vanaspati, Vegetable.

CONSUMPTION PATTERN OF EDIBLE OIL IN INDIA.

India is vast country and inhabitants of several of its regions have developed specific preference

for certain oils largely depending upon the oils available in the region. For example, people in the

South and West prefer groundnut oil while those in the East and North use mustard/rapeseed oil.

Likewise, several pockets in the South have a preference for coconut and sesame oil. Inhabitants

of northern plain are basically hard fat consumers and therefore, prefer Vanaspati a term used to

denote a partially hydrogenated edible oil mixture. Vanaspati has an important role in our edible

oil economy. Its production is about 1.2 to 1.4 million tonnes annually. It has around 10% shareof the edible of the market. It has the ability to absorb a heterogeneous variety of oils, which do

not generally find direct marketing opportunities because of consumers preference for traditional

oil such as groundnut oil, mustard oil , sesame oil etc. For example newer oils like soyabean,

ricebran and cottonseed and oils from oilseeds of tree and forest origin have found their ray to the

edible pool largely through vanaspati route. Of late, things have changed. Through technological

means such as refining, bleaching and de-odouraisation, all oils have been rendered practically

colorless. Odorless and tasteless, and therefore, have become easily interchangeable in the

kitchen. Newer oils, which were not known before they have entered the kitchen, like those of



cottonseed, sunflower, palm, oils or its liquid fraction (palmolein) soya bean and rice bran. About

60-70% predominately groundnut and mustard seeds are used to make non-refined or filtered oils.

This tends to have a strong and distinctive test preferred by most traditional customers. The share

of raw oils refined oils and vanaspati in the total edible oil market is estimated at 42%, 48%and

10% respectively.

DEMAND FOR EDIBLE OILS RISES IN INDIA:-

Indian food industry continues to show a strong commitment to oils imports following drop in

domestic demand, says industry body.

Fresh figures from the Solvent Extractors Association of India (SEAI) revel that edible oils

imports increased by some 21 percent for the first six months to April 2010.

Imports jumped to 2.2 million tonnes in the first half of 2009-2010 up from 1.82 million tonnes

for the same period last year.

Imports are expected to be much higher this year because of a drop in domestic oilseeds

production, ―said B.V. Mehta, executive director of

SEIA adding that India was likely to import about 500,000 tonnes per month this year.

Purchases of edible oils by India are expected to reach around 5 million tonnes this year from 4.4

million tonnes in 2008-2009 Mehta added reports the American Soybean Association.

Soya oil in particular saw strong growth. Imports of crude soy oil leapt to 735.352 tones in the

November 2009 to April 2010 period up from 236.990 tonnes in a year earlier. Crude palm oil

purchases rose 10.8 percent to 1.01 million tonnes from 911,520 tonnes.



India’s oilseed output for 2010 is estimated to be around 21.8 million tonnes, a fall of 6.4 percent

from 23.3 million tonnes last year.

The processed food market is enjoying decent growth in India, pushing up demand for oils. The

Indian branded food and drinks market grew last year by over 5 percent, according to recent

figures from ACNielsen, outpacing the global the global average growth rate 4 percent.

Supporting this buoyant overall trend, growth rates for individual product categories within the

Indian market too, reflect aggressive performance within the similar period.

SOYA OIL

The source: -

Soya was developed in China even before the time of written records. The name of the Soya bean

comes from ―sou‖ meaning ―big bean‖ and is one of the five holy plants of the Chinese people

5000 year ago. The Emperor himself planted Soya every year in a ritual ceremony.

Nowadays, as a member of the legume family, it has an important position in ecological

agriculture. Legumes supply the soil with nitrogen and are therefore highly suitable for use in the

rotation of crops. In addition to its agricultural value, the soyabean also supplies especially

healthy oil, which is making more and more friends.

The plant itself is a short bushy plant 20-180 cms in height. It is grown in normally cultivated

fields in rows.

Recently, there has been a massive boom in the production of genetically engineered soya bean,

which can resist certain herbicides. Vast areas of north and South America have been planted with

these GM Soya plants. The soya used in the production of our oil is exclusively from organic



farmers in France who belong to a cooperative near Albi. The cultivation association pay very

conscientious attention to ensure that No GM soya seed is used to the extent that they produce

their own organic seed.

Processing:-

Soya is a basic component of the diet in Asian countries and forms the basis of tofu. Soya oil first

cold pressing has a full aroma, which deliciously emphasizes the natural flavor of your salads and

raw dishes. Industrially refined soya bean oil is product which one should regard with particular

skepticism; with regard to flavor and nutritional significance industrially refined soya bean oil

has simply nothing to offer. When our soya bean oils is pressed, the whole oil mill is filled with a

magnificent aroma of fresh beans. The processor has to press some 10 killos of soya bean in order

to extract one simple litre of oils.

Cooking:-

It is not really advisable to beat cold pressed soya bean oil. Our soya bean oils have a delicate

bean like flavor. It is thus ideally suited to enhance salads of hearty noodle, potatoes and beans. If

you find the soya flavor to dominant, simply mix it with a little safflower oils.

Health:-

Soya bean oil possesses more than lecithin than any other oil. It is thus a real power food for the

bran and nervous system. Stress bound managers and all mothers with small children should

always keep a small store of cold pressed soya bean oil at hand:-

- 100g of cold pressed soya bean oil contain 31.7 mg of vitamin E.

- 13.7% saturated fatty acids.

- 25.3% monounsaturated fatty acids.

- 60.8% polyunsaturated fatty acids, of which 6.5% linolenic acid.



12. RETAILERS AND CUSTOMERS

WHAT RETAILERS HAVE TO SAY

1) Low margin: - Most of the retailers complained that they get very low margin in all

the products of ABCL as compared to its competitors that’s why unable to sell the

local brand .

2) Leakage problem: -The retailers also complained about the leakage problem faced by

them in the cartoons of Ginni and no replacement, but other companies are giving

them full replacement of leakage packages.

3) Feed back problem: - The retailers also complained that they get very less feed back

from the company, like whenever any scheme is introduced by the company, they are

not even made aware of the scheme.

4) Quality problem: - The retailers also said that sometimes the quality of soya oil is low

they have face problems regarding their image

5) MRP Problem :- Retailers also complained that in the days of rising prices,

sometimes it happens that MRP of ginni products is less than the price at which they

have purchased it from the distributor.

6) PROBLEMS related to new products :- they complained that sometimes they are

even unaware of companies new products

WHAT CUSTOMERS HAVE TO SAY

1) MRP problem :- customers complaint that sometimes they have to pay

more price then the MRP

2) Leakage problem:- customers even told that sometimes they have to

face leakage problems

3) PROBLEMS related to new schemes : customers complaint that even sometimes

retailers don’t even tell about new schemes

4) DISCOUNT schemes:- customers complaint that there are very less discount schemes

on soya oil as compared to other refined oil



13. RECOMMENDED MARKETING STRATEGY

The market strategy of the firm is a complete and unbeatable plan or an instrument designed

specially for attaining the marketing objective of company. The formulation of the marketing

strategy consists of two steps :-

1. Segmentation & target market selection.

2. Assembling the marketing mix.

Market Segmentation And Target Market Selection

Market segmentation and target market selection have an intimate relationship with market

strategy formulation.

The company may focus on the following factors while laying down the target market.

1. Geographic Segmentation

Geographically the country can be broadly divided into 3 sub segments -Rural, Suburban and

Urban.

In the first phase(after the test launch), Urban parts of the country should be targeted. The chosen

segment is targeted because –

Lack of infrastructure.

The consumption pattern & behavior in Rural India does not fit with the product attributes and

perceived benefits.

The limitation of disposable income is another factor that hampers entry in Rural areas.

Semi-Urban may be considered in the second phase. An year after the launch.

Within Urban India, the cities with 1 million + population i.e. top 23 metros will be targeted. A

soft launch of the brand should be undertaken before taking the brand to these areas. This (test

launch) will be undertaken in Bombay, since it (Bombay) is a high consumption city.



2. Demographic Segmentation

The demographic variables have been separately addressed to arrive at the target audience.

Age: 30-40 years + segment of the population is recommended to be targeted.

Family Life Cycle : In terms of family life cycle it is addressed at all of the following :

1. Old people who are suffering from heart diseases.

2. Married people who are health conscious.

The brand may positioned such that it fits all stages of family life cycle.

Income : The income segmentation may be all households with an annual income

exceeding Rs. one lakh. Targeted audience may be all households that can afford a

television or have access to satellite television.

3. Psychographic Segmentation

Social Class : In terms of psychography the social class targeted is the educated upwardly

mobile urban middle and upper class. .

Life Style : In terms of lifestyle, it may be aimed at those who favor buying convenience

products. They are also willing to experiment with alternate products in place of conventional

food items.

4. Behavioural Segmentation

The moulded segment of the market is perceived to be the growth engine of the market.

Hence, this segment is quite lucrative for a new brand launch. This segment comprises of

people who like to have chances and want to try new things.

5. Usage Rate

The market may be further segmented on usage rather than attitude.

TARGET AUDIENCE

Following from the above, it is recommended to target consumers who found other refined oils

too heavy. Usage rather attitude is being used to segment. There are 181 million urban individuals

in India Our target segment is people living in the top 23 metros (1 million +population), which

implies 63 million people.



SUGGESTIVE MARKETING MIX

The objective of the marketing mix developed is:

“To develop a product that is available, affordable, based on local raw material, and

adapted to the taste and the nutritional habits of the population”.

The elements of the mix - Product, Price, Place & Promotion have been entailed below :

Product

The two most important segments of the market are Moulded and Countline segment(segments

have a high share of the market). Also, it can be seen in the findings, the Indian consumer does

not recognise the difference between Moulded and Countline segment. Further, a key decision

that needs to be taken is to decide whether to have a core brand focus or have a plethora of

brands. Here, it would be advisable to launch a complete basket of products covering both the

countline and the Moulded chocolate segment (at least if not Panned). A range of brands can help

cushion out risks over the entire offering. Also, it has been that to sustain in the long term, a

complete portfolio of chocolates for every taste is essential. However, a concentration strategy

may be adopted in the first phase, focusing on one core flagship brand.

The various product attributes have been mentioned below :

Stipulations regarding the use of Hydrogenated Vegetable Oil-HVO (since it contains

nickel) may be adhered to. Nickel in chocolates can cause cancer. However, research is

still on to prove this. Product formulation should keep this aspect in mind.

Packaging : The packages or the cover packs, of the brands can be in Blue, Green and

Red color which represents a fun element so that the customers don’t even realize that

they are taking oil due to Dr’s recommendation. The packaging should keep the productfresh and protected from the harsh climatic conditions in the country, and hence provide a

longer shelf life.

Sizes : As can be seen in the findings the most popular size is litres should be used. .

Shelf Life:-The product should also have a high shelf life with a good shelf appeal as

well..

Product Differentiation



Since, there exists strong competition from heavy weights such as FORTUNE , NATURE

FRESH AND SOYUMM, the product offering should be well differentiated.

Pricing

Factors like competition, internal costs, the poistioning and corporate objective of the company

need to be taken into consideration by a company before pricing a product.

Premium pricing (relative to the competing brands), with special emphasis on taste and quality

(most important attributes-see findings) is recommended. The premium pricing does not suggest

that the offering is made unaffordable to the target consumer. A high price would not accompany

a promise for a better taste and quality.

Further, the product category is relatively inelastic i.e. consumers would not stop buying their

favourite brands if the price is increased by a few rupees (see findings). Consumers feel that even

if the price of their favourite brand is reduced, they might not buy more of it.

Placement

The success of any FMCG product thrives on distribution. Factors like financial cost

effectiveness) perishability of the product, repeat orders; managerial capacity and unit value of

the product need to be carefully analysed while setting up the distribution framework of the

company. The product category is essentially a ―pull‖ market. However, the channel members

provide greater visibility to the product.

Recommended Distribution Logistics

The first task in hand should be, to effectively map the territory into smaller more accessible and

controllable units. An effective territory mapping needs to be done not only to provide an efficient

coverage of the market but also to provide growth opportunities to the constituents (stockists), as

the company grows. The recommended distribution chain would be as follows:



Carrying & Forwarding Agents: These may be appointed at two or more State(s) of operation

of the company. Carrying & Forwarding agents work on a commission basis – 3% (industry

norms) of the goods handled. It is recommended that the country keeps about 4 to 6 weeks of

inventory at the C&F level and a commission structure which is in keeping with the industry

norm. Therefore a 3 percent commission on the invoice value may be provided to the agents.

Stockists : A stockist provides a local delivery point for the manufacturer/marketer. They store

the products, break bulk, and distribute to the retailers. With greater no. of retailers now seeking

credit from the retailer, efficient management of collection has become a vital part of the

stockists’ job.

The main problems that new product faces is that of getting experienced and effective channel

members. As existing marketing marketer/manufacturer can piggy back on the existing channel

structure. A new company will have to provide greater incentives convince channel members to

stock the product offering. Hence, an innovative means of channel handling needs to be adopted:

Competitive commission to the stockists-around 5.66% on the invoice (industry standards

5.66%)

The efforts of the sale representatives employed by the stockists to get orders may be

supplemented by the manufacturer’s sales force.

Retail outlets to be serviced at least four times in a month (atleast once a week)

Distributors (stockists) to maintain stock of not more than 15 to 20 days

Since, distributors are to maintain airconditioned godowns, in summers the A/C expenses may

be borne by the Co.



Wholeseller : Wholeseller’s prime concern is buy in bulk and sell at the fastest rate. The aim of

any distribution chain of mass-market product category like soya oil would be to expand its reach

i.e. the no. of outlets storing its products. This may not be possible even with a well established

stockist network. Hence, wholeseller’s paly a significant role in supplementing the stockists’

effort snd in providing a better reach to the product.

Retail Outlets : It is extremely important for any chocolate brand to have a well entrenched retail

presence. Reach Is the key.

The first stumbling block for a new brand/product is, to convince the retailers to stock the

offering. Retailers want smaller quantities at shorter intervals. Hence, retailers may be convinced

by offering smaller quantity options to them. Also, retail margins provided may be higher than the

industry than the industry standards (industry standards range from 8.5% to 9.5% of the MRP).

The margins offered can be around 9.75% of the MRP.

Promotion

This involves communicating persuasively to the consumers, in order to arouse their interest in

the product. A detailed promotion plan involving advertisement, sales promotion and public

relations is proposed.

.

Advertisement Plan

The Advertisement plan could be as under:

Corporate objective: The corporate image should be built over a period of time, so as to

reinforce consumer confidence in the brands of the company. This is also essential to counter

competition, since over a period of time, names such as fortune , nature fresh and soyumm have

attained high levels of recognition and assurance.

Advertisement Objectives

To position the product as a ―high quality brand, with a wide range of offering, providing, fun

anytime, anyplace products‖.



To create awareness about new arrivals of soya oil.

Induce consumer trials.

Build corporate image

To undertake competitive advertisement.

Message: The message design will be consist of following;

Appeal: it should be appealing one

Presentation: should be well presentable

Message Source: For print media the message source will be the copy part and creative

advertisement design. For electronic media, the source will be whole family unit, younger enjoying the food.

Media

Print Media: Will be the major magazines read by the target segment i.e.., India today,

society, femina, stardust etc..

Electronic Media: Since the whole of target segment watch Satellite TV during prime time

and advertisement will be featuring share for 3 or more time to leave an impact.

Public Relations:

I. The company will hold a press conference announcing its arrival in India and will highlight its

global achievements.

II. Company has plan to sponsor events like 2 viz., skiing river rafting, yachting etc.

III. Company will also sponsor fun based TV programs.

Sales promotion Activities: To induce consumers to try the new product and to get the product pushed in the market the sales promotion plan should include the following :

Trade promotion: The Company will have to offer lucrative trade promotion schemes, in order to

push primary sale. These include incentives to stockists for pushing the sale of oil. At the retail

level, the following trade promotion measures may be adopted:

Schemes such as , a certain percent off on the purchase of Rs 5000 or Rs 10,000 worth of oil.

A 15 ltr tin free with every Rs50,000 purchase.

Shop Displays



Apart from these, WindowShelf space may be purchased outright.

Consumer Promotion: Some of the consumer offers that could be introduced are :

1. Free gifts like pen, soaps etc., on return of oils wrapper

2. Money Savers

3. The Company can announce consumer ―contests‖ (with proof of purchase) with attractive

prizes, supplemented by an advertisement campaign.

.

MARKET TESTING PLAN

The company should test the product before it goes national (23 metros with million +

population). This is so because:

1. It would reduce the risk of failure in the market where it goes national, by validating the

marketing mix.

2. Facilitate validation of positioning.

3. Allow corrective action through incorporation of consumer feedback.

For test marketing the SOYA OIL, the plan may be as follows:

1. Test Objectives: To validate the brand names, new outlets, etc and to measure the sales

volume, pricing and promotion policy. Competitor reaction can also be analysed.

2. The product may be launched in Bombay ( as a soft(test) launch). This selection was based on

:

Bombay is uniformally represented by the target segment

IMPLEMENTATION

A well designed marketing plan counts for nothing, if not implemented properly. Success in the

market place depends upon the way the plan is implemented. The launch is recommended to be

before winters-say September or October, since –

That period would facilitate high Diwali sales, and



During winters people prefer more oily and fried as well as junk food so consumption is more

.

The success of the brand would largely depend on the following:

Sales Distribution Network

Quality standards

Research and Development-continuous innovative products

Technology support

Before the launch the following should be ensured:

1. Product literature to the sales department to be provided & Training to sales staff

2. Feedback of sales staff regarding product competition

3. Feedback of other departments like sales forecast to the production department, R&D for

product modification.

Finally, in order to ensure long term success of the product

Company should have a personnel department., which will handle employers related

problems.

Company should set up an ―operational department‖ which will be for helping the distributors

and the retailers.

The marketing team must maintain a ―Management Information System‖ consisting of *Sales

reports * Consumer feedback * product

14. RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

Research would be carried out based on these objectives.

1) To find out customer preferences towards different brands of soyabean oil

2) Market share of each brand towards total market share of soyabean oil

3) What is the margin retailers are getting from various brands & what are the brands

they want to sell



4) What problems are they facing related to new or various products

5) To get the feedback from retailers & customers as well so as to help company in

devising marketing strategy.

SCOPE & LIMITATIONS OF THE STUDY

The scope of the study and survey is limited to bathinda region only.

It is a hard fact that each study suffer from some limitations. So is the case with this

study. One of the limitations of the study is, as the information is collected from the

retailers, the monthly sales figure given by them is based entirely on their own judgment.

So a few of them might have given the wrong figures related to their monthly sales.

Another limitation was that some of the retailers were busy and could not give

appropriate information. And also very few retailers did not want to share any

information.

Another limitation of the study was the customers who were personally interviewed did

not want to share the actual data as few of them were giving fake data

The sample size being very small , that is , only 150respondents, limited the scope of

RESARCH

Time constraints put boundaries to sample area and hence limited the extent of the study

Taking convenience sampling might have led to some bias as people with different age

groups have different perceptions

RESEARCH METHODOLOGY

A research design is the arrangement of condition for collection and analysis of data in

a manner that to, combine relevance to research purpose with economy in procedure.

Research Design :- is conceptual structure within which research is conducted. It

constitutes the blue print of collection, measurement and analysis of data .Research

Design is needed because it facilitates the smooth sailing of various research

operations, thereby making research as efficient as possible yielding maximum

information with minimum time, effort and money. Research Design stands for



advance planning of methods to be used for collecting relevant data and techniques to

be used in the analysis .The design helps re searcher to organize his ideas whereb y it

will be possible for him to look for flaws and inadequacies.

Method of data collection: - for collecting data and the accuracy of facts, complete enumeration

was used. for collecting the data a sample of retailers & consumers were drawn

Data Analysis: - For the data analysis to know the market share of various soyabean brands

computer programme called Microsoft Excel was used, with the help of Microsoft Excel, I came

to to know the quantity sold per month of each brands.

Sample size: - sample size was 50 of retailers & 100 of customers.

Sources of primary and secondary data :

The major aim of the project was to analyze the competition in occupying market

shares of various soyabean oil brands. Therefore I had to get considerable information

about the competing brands. For this I had to go through a lot of secondary data.



15. Analysis of Retailer Responses

1. which brands of soyabean oil are available in the shop?

Out of 50 retailer respondents few retailers were only stuck to one soyabean brand and

maximum out of them were having or were dealing in almost all the brands

31%

20%

25%

8%

16%

Various Soyabean Brands Available

Fortune Nature fresh Soyumn Ginni Home Cook

Fortune 40

Nature fresh 25

Soyumn 32

Ginni 10

Home Cook 20



2. which soyabean oil has maximun sale per month?

Out of the 50 retailers 60% were of the view that fortune is the market leader. After that Home

cook is on the second position.

3. which soyabean oil has maximum sale in different quantity packs?

Fortune

60%

Nature fresh

10%

Ginni2%

Home cook

17%

Soyumm

11%

Soyabean oil with maximum sale

Fortune 32

Nature fresh 5

Ginni 1

Home cook 9

Soyumm 6



As shown in the diagram 1ltr packing is the most saleable and it holds 60% share of the total.

4. Rank of the followings attributes in soyabean oil between 1-5 according to

customer importance ( 5 being maximum)

GRADING 1 2 3 4 5

Taste 3 16 23 3 5

Quality 3 18 20 5 4

Packaging 6 16 18 5 5

Brand image 7 21 8 8 6

Price 1 2 1 6 40

Out of the various attributes shown above PRICE is one of the most important factor that

influences buying decisions of various customers .

5. what influences customers to buy the brand?

I ltr60%

5ltr

24%

15ltr

16%

Packing with maximum sale

I ltr 5ltr 15ltr

30 12 8

Advertising 4



Most of the customers consume soyabean oil because either they are suffering from any heart

disease or are health conscious and the ratio covered is 80%.

6. what are customer's feedback regarding soyabean oil?

Customers are not satisfied with the discounts or the great offers they are getting , sometimes they

have to pay more than the MRP , they consume soyabean oil just they are going health conscious

, moreover they are receiving certain complaints regarding the tetra packing because of leakage.

7. Are you satisfied with incentives from the oil company?

Advertising, 4Attractiv

e

packaging, 5

Retailer, 4

Shop display, 7

Pricing, 28

Discount, 30

Health

conscious, 40

Attractive packaging 5

Retailer 4

Shop display 7

Pricing 28Discount 30

Health conscious 40

Yes 38



Many of the retailers said that they are satisfied with the incentives they are getting, 76%retailers

are satisfied.

8. Are you satisfied with the services of the brand you are selling?

60% of the retailers said that they are satisfied with the brands the are selling.

Yes

76%

No

24%

satisfied

Yes

60%

No

40%

satisfied

No 12

Yes 30

No 20



9. If no then what are the suggestions you will give to the company?

32% of the retailers want to give suggestions that company should provide retailers some schemes

which would help retailers to boost company sales.

10. Any suggestions to the company?

They want that their margin should be increased each and every rather than they go on a fixed

margin ,even they want that certain perks or some schemes should be given to retailers also.

16. ANALYSIS OF CUSTOMER RESPONSES

1. Do you use soyabean oil?

Transportatio

n

26%

Scheme

32%

Margin

38%

Credit

4%

Transportation 13

Scheme 16

Margin 19

Credit 2

Yes 62

No 38



Customers respondents agreed that they use soyabean oil and out of 100 respondents 62%agreed.

2. If yes (check) the brand you use?

In consumption as well as preferable brands FORTUNE leads with 41% and home cook is with

13 % only.

3. Rank the following attributes according to their importance to you? (5 being

maximum)

GRADING 1 2 3 4 5

Taste 6 19 25 5 7

Yes

62%

No38%

Consumption of soyabean oil

Fortune 25

Nature fresh 12

Soyumm 8

Ginni 2

Home cook 15



Quality 5 17 27 6 7

Packaging 9 19 23 6 5

Brand image 7 21 4 13 7

Price 2 4 7 9 40

Out of the various attributes shown above PRICE is one of the most important factor that

influences buying decisions of various customers.

4. What influenced you to buy the above stated brand(s)?

Advertisement 3

Attractive Packaging 4

Retailer 12

Shop display 5

Pricing 21

Health conscious 17



PRICING is again the leading factor followed by the customers who consume just because they

are health conscious.

5. If particular brand is not available with retailer the you

will. . . . .?

drop the idea of buying it 2

go to another retail outlet 37

try another brand 23

Advertiseme

nt

5%

Attractive

Packaging

7%

Retailer

19%

Shop display

8%

Pricing

34%

Health

conscious

27%



As per the collected data it is clear that customers want to stick to their particular brand rather

than trying out some different brand.

6. What according to you a suitable price for 1 ltr which is of good quality?

below Rs 30 6

between 30 and 40 9

between 40 and 50 39

more than 50 8

AS clear from the above diagram it is clearly indicated that customers want price of 1ltr between

the range of 40 – 50 so that it is easily affordable for them easily.

7. If your brand is few Rs expensive than it, then will you go for it?

3%

60%

37%

If particular brand is not available

drop the idea of buying it go to another retail outlet

try another brand

10%

14%

63%

13%

Price for 1 ltr

below Rs 30 between 30 and 40 between 40 and 50 more than 50



Customers are ready to pay even high price because they are satisfied with what they buy.

8. A sale promotion scheme like rs 10 off , 250 gms extra or a product free, whould it

affect you purchase decision?

Almost 75% customers agrred that sales promotion schemes do effect the buying decisions.

9. what size of packaging do you normally buy?

Yes

63%

No

37%

YES

76%

NO

24%

Yes 39

No 23

YES 47

NO 15



1LTR packaging is mostly sold in the market.

10. Are you happy with the kind of soyabean oil brands available in india, today?

Majority of the customers are satisfied with the brands that are available in India.

11. If no then why not?

All the customers have given their suggestions as well as complaints which are shown later.

1ltr

60%

5ltr

19%

15ltr

21%

Packaging bought normally

YES

60%

NO

40%

1ltr 37

5ltr 12

15ltr 13

YES 37

NO 25



17. SUGGESTIONS OF THE RETAILERS & CUSTOMERS

1) Leakage problem should be looked after and the replacement of the leaked packets

should be given to them.

2) The company should reduce the cost of their products and the margin of the retailers

should be increased.

3) There should be proper channel of information, whenever any scheme is introduced by

the company for the retailers, they should be properly informed about the scheme.

4) In the same way, whenever any scheme is introduced for the consumer there should be

atleast a print advertisement if T.V. advertisement is not possible.

5) Other incentives should also be given to the retailers like glow sign boards etc.

18. CONCLUSIONS & RECOMMENDATIONS

1) Bathinda chemical should concentrate more on advertisements to make a good

presence and market for their product.

2) Bathinda chemical should also take into consideration the above given

recommendations by the Retailers and Customers to make a good relation with them,

3) Leakage problem should be taken care of and the retailers should fully compensated

for their loss due to leakage.

4) There should be proper feedback for the retailers AS WELL AS customers whenever

any scheme is introduced for the retailers & customers they should be made aware of



it. Sales representatives should be given guidelines to intimate each and every retailer

of his area about the schemes.

5) Regarding the introduction of new products, the company should go for aggressive

marketing. There is a lot of potential in Soya Refined oil segment, but retailers are not

even aware of our product.

6) Whenever any consumer oriented scheme is introduced, the scheme should be directly

targeted to that person who actually uses i.e., house wives.

7) Non monetary incentives should be also given to the retailers in each and every city.

They should be given glow sign boards and other sales promotional materials. This

will boost up their spirits.

MRP problem during the days of rising prices should be taken care. In this

situation if retailers are getting the products on a price higher than the MRP they

can’t sell it more than the MRP. So this problem should be looked after carefully.



19. BIBLIOGRAPHY

Kotler Phillip, Marketing Management, Millennium edition. (Prentice hall of India).

Business today

GREEN AND TULL , Marketing Research

Websites

http://www.mittalgroup.co.in/thegroup.htm

http://en.wikipedia.org/wiki/Marketing

http://www.mittalgroup.co.in/industry-main.htm










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